Only 10% of Eligible Users Have Signed Up for Free Year of Apple TV+ [Report]

Only 10% of Eligible Users Have Signed Up for Free Year of Apple TV+ [Report]

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Only 10% of eligible users have signed up for a free 1-year trial of Apple TV+, according to Bernstein analyst Toni Sacconaghi. That's less than 10 million people.

The analyst suggests three potential causes for the unexpectedly low take rate:

"We see 3 plausible explanations for this surprisingly low take rate:
(1) Apple hasn't been able to effectively promote TV+ - to which we would encourage the company to more directly leverage its 1.5B device installed base;
(2) Apple may be conservatively estimating its “take rate” or deliberately scaling its promotions of TV+ slowly to mitigate the negative accounting impact of its early ramp; and / or
(3) Apple TV+ is failing to resonate with customers, perhaps due to its limited content offerings, in contrast to the mega-launch of Disney+ (which comparatively achieved 10M subscribers in 1 day, despite offering a two week free trial vs. Apple's one year free trial)".

Bernstein reiterates a market perform rating on AAPL with a target price of $300. The stock is currently trading at $317.

[via StreetInsider]


Only 10% of Eligible Users Have Signed Up for Free Year of Apple TV+ [Report]

marcel.ursaciuc - February 5, 2020 at 3:31am
Good to have acces to all movies in this subscribe like Netflix not just for original Tv shows
PaulieP - February 4, 2020 at 6:38pm
Because the content is not worth it. Apple TV came up at the same time as Disney . People were more concerned about the Mandalorian then about Jason Momoa and See or Apples morning show. I’m curious to see if it will get any traction. Apple is not a car company to get their building cars, they’re not a movie set yet they’re making movies. I guess this is the future, let’s see how it goes.
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